LPL Financial Holdings Inc. (LPLA)
NASDAQ:LPLA
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LPL Financial
(NASDAQ:LPLA)
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Rating:62Neutral
Price Target:
$288.00
â–¼(-9.27% Downside)
Action:Reiterated
Date:05/04/26
The score is held back primarily by deteriorated cash generation (negative operating and free cash flow) alongside meaningful leverage, despite continued revenue growth and positive earnings. Offsetting this, the latest earnings call signaled strong operating performance (record adjusted EPS, solid organic net new assets, high retention) and improved cost discipline. Technicals and valuation are broadly neutral, with longer-term trend resistance and a modest dividend yield.
Positive Factors
Diversified recurring revenue
LPL’s mix of commission/advisory, client cash revenue and service fees creates multiple recurring revenue pillars. This diversification cushions results versus market swings, scales with assets and advisor usage, and supports mid-term revenue stability and predictability across cycles.
Negative Factors
Deteriorated cash generation
Negative operating and free cash flow at scale indicate the business is consuming cash despite accounting profitability. This reduces internal funding for investments, raises dependence on external financing or reserves, and constrains durable capital allocation choices over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified recurring revenue
LPL’s mix of commission/advisory, client cash revenue and service fees creates multiple recurring revenue pillars. This diversification cushions results versus market swings, scales with assets and advisor usage, and supports mid-term revenue stability and predictability across cycles.
Read all positive factors
LPL Financial Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business lines, revealing which areas drive growth and profitability, and indicating strategic focus.
Highlights income from different business lines, revealing which areas drive growth and profitability, and indicating strategic focus.
Data provided by:
The Fly
The FlyLPL Financial (LPLA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.26B
Dividend Yield0.32%
Average Volume (3M)940.17K
Price to Earnings (P/E)24.3
Beta (1Y)1.22
Revenue Growth38.08%
EPS Growth-22.75%
CountryUS
Employees9,118
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)11.26
Shares Outstanding79,982,864
10 Day Avg. Volume1,105,959
30 Day Avg. Volume940,172
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)5.26
Price to Sales (P/S)1.65
P/FCF Ratio-28.29
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit6.10
Enterprise Value/Ebitda11.40
Forecast
1Y Price Target
$394.22Price Target Upside24.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)22.91
Revenue Forecast (FY)$20.58B
LPL Financial Business Overview & Revenue Model
Company Description
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its...
How the Company Makes Money
LPL Financial primarily makes money by providing brokerage, advisory, and platform services to the advisors and institutions that use its wealth management infrastructure.
Key revenue streams include:
1) Commissions and transaction-based revenue:...
LPL Financial Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating and financial results—record adjusted EPS (+9% YoY), solid organic net new assets ($21B, ~4% annualized), improved recruiting and record pipeline levels, high asset retention (98% Q1), sequential revenue gains across major categories, and demonstrated cost discipline with a tightened G&A outlook. Near‑term challenges and uncertainties were acknowledged, including market‑driven asset declines reducing total assets and Commonwealth run‑rate EBITDA, Commonwealth retention still below target (mid‑80s vs 90%), seasonally weak April organic growth (~1.5%), modest pressure on ICA yield and client cash balances, and open work on future cash monetization strategies. Overall, the positives around growth, profitability, capital flexibility and technology/AI initiatives substantially outweigh the modest integration, market, and seasonal headwinds described.Positive Updates
Strong Organic Net New Assets and Recruiting
Total organic net new assets of $21 billion in Q1, representing an approximately 4% annualized growth rate; recruited assets improved to $17 billion with ~ $15 billion added in traditional markets and ~$2 billion through expanded affiliation models; management reports recruiting pipeline at record levels and expects improved pull-through over the year.
Negative Updates
Total Assets Declined Due to Market Headwinds
Total client assets decreased to $2.3 trillion in Q1 as organic growth was more than offset by lower equity markets; Commonwealth run‑rate EBITDA was revised down from $425 million to ~$410 million due to mark‑to‑market asset declines.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Organic Net New Assets and Recruiting
Total organic net new assets of $21 billion in Q1, representing an approximately 4% annualized growth rate; recruited assets improved to $17 billion with ~ $15 billion added in traditional markets and ~$2 billion through expanded affiliation models; management reports recruiting pipeline at record levels and expects improved pull-through over the year.
Read all positive updates
Company Guidance
Management gave detailed quarter and near‑term guidance: Q1 total client assets were $2.3 trillion with organic net new assets of $21 billion (~4% annualized) and record adjusted EPS $5.60 (+9% YoY) on an adjusted pretax margin of ~38% and gross profit of $1.593 billion (+$51M Q/Q); recruiting brought $17B of assets (≈$15B traditional, ~$2B expanded affiliations), asset retention was 98% in Q1 (97% LTM) while Commonwealth retention is mid‑80s tracking to a 90% target and estimated run‑rate EBITDA once integrated is ~$410M (vs. $425M pre‑market moves). Revenue and yields: commission/advisory net of payout $487M (payout 87.2%, down 80bps; expected +~50bps in Q2), client cash revenue $460M with cash balances $59B (down $2B), ICA yield 336 bps (‑5bps; expected roughly flat in Q2), service & fee revenue $211M (+$30M Q/Q; +$5M expected in Q2), transaction revenue $81M (+$6M; ~‑$5M expected in Q2), other revenue ~$4M (run‑rate ~$6M/quarter). Expense and capital guide: core G&A $532M in Q1 with full‑year core G&A now guided to $2.155–2.19B (upper end lowered $20M) and Q2 core G&A $540–560M; TA loan amortization $136M (expect +$10M Q2), promotional $76M (expect +$5M Q2), SBC $22M (up a few $M in Q2), tax rate ~26.5% (Q2 similar), corporate cash $567M (up $98M), leverage 1.86x, and ~$125M of opportunistic buybacks planned for Q2; management reiterated a long‑term mid‑ to high‑single‑digit organic growth target (April NNA ~1.5% and April client cash down ~$4.5B due to seasonality).LPL Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.26B | 16.99B | 12.39B | 10.05B | 8.60B | 7.72B |
| Gross Profit | 4.30B | 4.35B | 3.37B | 3.05B | 2.37B | 1.71B |
| EBITDA | 2.30B | 2.18B | 2.11B | 1.99B | 1.53B | 936.43M |
| Net Income | 900.86M | 863.02M | 1.06B | 1.07B | 845.70M | 459.87M |
Balance Sheet | ||||||
| Total Assets | 18.84B | 18.49B | 13.32B | 10.39B | 9.48B | 7.99B |
| Cash, Cash Equivalents and Short-Term Investments | 2.91B | 1.13B | 1.01B | 541.76M | 884.28M | 514.92M |
| Total Debt | 7.89B | 7.26B | 5.75B | 3.96B | 2.95B | 3.05B |
| Total Liabilities | 13.15B | 13.15B | 10.39B | 8.31B | 7.31B | 6.32B |
| Stockholders Equity | 5.69B | 5.34B | 2.93B | 2.08B | 2.17B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | -1.19B | -993.42M | -284.94M | 109.33M | 1.64B | 237.15M |
| Operating Cash Flow | -573.91M | -423.04M | 277.59M | 512.61M | 1.95B | 453.13M |
| Investing Cash Flow | -2.39B | -2.37B | -1.59B | -860.19M | -376.40M | -458.64M |
| Financing Cash Flow | 3.01B | 3.17B | 1.42B | -208.53M | -504.27M | 278.84M |
LPL Financial Technical Analysis
Negative
317.41
Price Trends
305.09
Negative
322.76
Negative
337.02
Negative
Market Momentum
-11.00
Positive
35.55
Neutral
21.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPLA, the sentiment is Negative. The current price of 317.41 is above the 20-day moving average (MA) of 295.85, above the 50-day MA of 305.09, and below the 200-day MA of 337.02, indicating a bearish trend. The MACD of -11.00 indicates Positive momentum. The RSI at 35.55 is Neutral, neither overbought nor oversold. The STOCH value of 21.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPLA.
LPL Financial Risk Analysis
LPL Financial disclosed 32 risk factors in its most recent earnings report. LPL Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LPL Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.52B | 24.52 | 13.64% | 0.45% | 18.26% | 66.10% | |
77 Outperform | $37.02B | 37.32 | 19.89% | 0.46% | 12.92% | 28.20% | |
74 Outperform | $27.67B | 13.10 | 17.21% | 1.26% | 5.83% | 1.44% | |
71 Outperform | $10.79B | 8.17 | 15.14% | 1.43% | 9.07% | 45.94% | |
70 Outperform | $148.44B | 16.19 | 19.08% | 1.07% | 8.11% | 53.31% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $21.26B | 24.35 | 17.04% | 0.32% | 38.08% | -22.75% |
* Financial Sector Average
LPLA
LPL Financial
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-29.03%
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LPL Financial Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
LPL Financial Updates Governance Bylaws and Shareholder Approvals
Neutral
May 15, 2026
On May 14, 2026, LPL Financial’s board adopted its Eighth Amended and Restated Bylaws, aligning them with recent developments in Delaware corporate law, tightening and clarifying procedures for director qualifications, shareholder nomination...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.